Trade What You See, Not What You Want To See or Not What You Think It Will Be.. That may be most of your problem. It was mine.
Stop thinking that you know what the market is going to do.
Stop thinking that you know what the market is going to do.
You don't. If you are going to trade the trend, trade the trend. Don't trade what you think the trend is going to do. Trend traders nemesis... thinking the trend is overbought/oversold (another name for top/bottom picking).
If the trend is up, buy every dip, you will only be wrong once... at the top when it fails to make a higher high. If the trend is down, short every ding, you will only be wrong once, when it fail to make a lower low. Don't think, just take the trade.
Learn price action (PA). Everything starts from there. Clear a chart of your favorite timeframe (TF), no indicators, ma's, nothing... but price bars or candlestick. Color your bars... up bars (close higher than open) one color, down bars (close lower than open) another color.
Identify the PA by marking Peaks (P), ), Troughs (T), Rising Troughs RT), Rising Peaks (RP), Falling Peaks (FP) and Falling Troughs (FT) and bounces. Mark area's of consolidation (arrow or shades). Consolidation is when there are lots of bounces, and no Rising Peaks or Falling Troughs are made..
After you do this for a few weeks and you will begin to see the patterns. Short the Falling Peaks (FP) after a Falling Troughs... or buy the Rising Troughs after a Rising Peaks. I use range bars, makes it much easier and consistent.
If the trend is up, buy every dip, you will only be wrong once... at the top when it fails to make a higher high. If the trend is down, short every ding, you will only be wrong once, when it fail to make a lower low. Don't think, just take the trade.
Learn price action (PA). Everything starts from there. Clear a chart of your favorite timeframe (TF), no indicators, ma's, nothing... but price bars or candlestick. Color your bars... up bars (close higher than open) one color, down bars (close lower than open) another color.
Identify the PA by marking Peaks (P), ), Troughs (T), Rising Troughs RT), Rising Peaks (RP), Falling Peaks (FP) and Falling Troughs (FT) and bounces. Mark area's of consolidation (arrow or shades). Consolidation is when there are lots of bounces, and no Rising Peaks or Falling Troughs are made..
After you do this for a few weeks and you will begin to see the patterns. Short the Falling Peaks (FP) after a Falling Troughs... or buy the Rising Troughs after a Rising Peaks. I use range bars, makes it much easier and consistent.
No comments:
Post a Comment